Domino’s Pizza Inc. has initiated legal proceedings against ConverseNow Technologies Inc., alleging that the tech company’s AI-driven voice ordering system infringes upon privacy laws by recording customer calls without consent. The lawsuit, filed in the U.S. District Court for the Eastern District of Michigan, contends that ConverseNow’s technology intercepts and records customer interactions during phone orders, potentially violating the California Invasion of Privacy Act (CIPA).
According to the complaint, when customers in California place orders via phone, their calls are answered by ConverseNow’s automated voice assistant. This system processes orders, suggests additional items, and confirms details, all while recording the conversations. The recordings are purportedly used to refine ConverseNow’s AI capabilities and enhance upselling strategies. The plaintiffs argue that this practice occurs without informing customers, thereby intercepting communications without consent, which may contravene CIPA provisions.
ConverseNow’s dual role is highlighted in the lawsuit: while it streamlines order processing for Domino’s, it simultaneously utilizes customer interactions to improve its own AI technology. The plaintiffs allege that Domino’s “aids, agrees with, employs, or conspires” to grant ConverseNow access to customer communications, potentially violating specific sections of CIPA, namely California Penal Code § 631(a) and § 632. Notably, CIPA violations can result in penalties of $5,000 per infraction.
The plaintiffs seek to represent two classes: a general class encompassing all California residents whose calls were intercepted by ConverseNow and a subclass for those who specifically contacted Domino’s stores in California. This legal action underscores the growing scrutiny over the use of AI in customer service and its compliance with privacy laws. A ruling in favor of the plaintiffs could prompt AI technology providers and service-oriented businesses nationwide to reassess their privacy practices.
In a related development, a similar lawsuit was filed in Illinois, where plaintiffs accused Domino’s of collecting voiceprints through its AI ordering system without consent, potentially violating the Illinois Biometric Information Privacy Act (BIPA). This case was voluntarily dismissed by the plaintiff in January 2025, leaving the current California lawsuit as a focal point in the ongoing debate over AI and privacy.
As the case progresses, it will be closely monitored for its potential implications on the intersection of artificial intelligence and consumer privacy rights.